Abstract
The aim of this paper is to specify a theory to explain why transitions to a market economy cause a shift to a higher level of innovation. Marketization increases the power of economic actors relative to political actors, increases inter-firm competition, creates new opportunities for entrepreneurship, and subsequently motivates innovative activity. For our empirical application, we focus on China's transition economy, which offers a broad range of institutional environments to examine the relation between market transition and increasing innovative activity by entrepreneurs and firms.
| Original language | English |
|---|---|
| Pages (from-to) | 397-425 |
| Number of pages | 29 |
| Journal | Journal of Institutional and Theoretical Economics |
| Volume | 166 |
| Issue number | 3 |
| DOIs | |
| Publication status | Published - 2010 Sep 1 |
All Science Journal Classification (ASJC) codes
- Economics and Econometrics
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Nee, V., Kang, J. H., & Opper, S. (2010). A theory of innovation: Market transition, property rights, and innovative activity. Journal of Institutional and Theoretical Economics, 166(3), 397-425. https://doi.org/10.1628/093245610793102152